Thursday, October 03, 2013

More Signs That The Failed Reflationary Bubble Top Is Being Formed - Carlyle Group Dumping Real Estate

Some time ago I wrote of the shenanigans that financial firms were pulling that gave a false appearance of a housing recovery.  And that these recent IPOs driven by financial predators buying up large blocks of real estate to rent back to Americans, (more of that crony debt-slavery renter capitalism) was surely a sign that the financial idiots were once again kings for a day.  ie, The stock market has become a looting mechanism used to privatize gains and socialize losses (dumping overpriced and often distressed and even useless assets onto society) and when there is enough amnesia that investors were willing to once again buy up these dumped scams that we were once again likely nearing a failed  reflationary bubble top. 

More proof points are rolling in.  We just had the realtor Re/Max dumping an IPO onto the market for the first time.  Why exactly did Re/Max “need” to come public?  So that their management could cash out?  And the Carlyle Group, one of the most politically well-connected  crony financial firms in the world, is dumping real estate purchased at distressed levels during the crisis. 

As I have remarked repeatedly in the last five years, housing is a consumption item.   It may allow predatory bankers to create money out of thin air for some period of time and thus the appearance of some type of recovery but that bubble won’t last.    Finance, real estate and insurance, FIRE industries, do not create wealth.  They consume it.

posted by TimingLogic at 12:07 PM

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